Enter your Email To Join Us For Free Today!

Greek Prime Minister Lucas Papademos meets with officials from the nation's main political parties to hammer out reforms needed to secure more bailout money.

NEW YORK (CNNMoney) -- Officials in Greece are under pressure to reach agreement on more austerity measures, as the threat of a default hangs over the country and protestors take to the streets.

Prime Minister Lucas Papademos and the leaders of Greece's governing coalition need to hammer out the details of a package of job and salary cuts, as well as pension reforms and other measures to reduce public spending.

Papademos was set to meet with party leaders Tuesday evening, but talks have now been pushed back to Wednesday, according to the Prime Ministers office.

It was the second delay since the leaders agreed Sunday on the "main elements" of the program, including a plan to reduce public spending by 1.5% of gross domestic output this year.

Meanwhile, Greek labor unions held a daylong strike Tuesday to protest the reforms, which they see as being foisted on them by foreign creditors.

The reforms are needed for Greece to receive a second bailout worth €130 billion from the European Union, International Monetary Fund and European Central Bank.

Without additional funding, Greece will most likely miss a €14.5 billion bond redemption in March. The concern is that a so-called disorderly default could force Greece out of the euro currency union and shock the global financial system.

On Monday, Papademos and Greek Finance Minister Evangelos Venizelos met with officials from the EU, IMF and ECB, collectively known as the troika.

In a statement issued after the meeting, Venizelos said the Greek people face a "dramatic and acute dilemma."

The austerity reforms under discussion will have "very high social costs," he said. But if negotiations fail, that would bankrupt the country and lead to "even greater sacrifices," he warned.

"The finalization of the new loan agreement and receipt of money is vital for the salvation of Greece," said Venizeols.

Greece, which owes some €330 billion, has come close to default before.

The nation has struggled to follow through on austerity measures and economic reforms that were a condition of its 2010 bailout package. But the nation's economy has been in recession for years and many analysts warn that additional austerity could make the situation worse.

Jose Barroso, president of the European Commission, urged Greek political leaders to come to an agreement soon, saying the nation faces a "very decisive moment."

"We want Greece in the euro," said Barroso, adding that the EU is willing to help support the nation. But he stressed that the Greek government "needs to make a commitment to the common goals" of the bailout program.

Meanwhile, Greece appears close to a deal with its creditors in the private sector to write down a portion of the nation's debt.

The agreement, which would result in significant losses for bondholders, is intended to help reduce Greece's debts to 120% of GDP by 2020, from about 160% currently.

The worsening Greek economy has raised calls for the nation's creditors in the "official sector" to provide some relief.

The European Central Bank, which holds an estimated €30 billion to €45 billion of Greek debt, is under pressure to forego profits on those bonds, as are individual euro area central banks.

-- CNN's Elinda Labropoulou contributed reporting from Athens.